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DannLaw asks court to compel Governor DeWine to reverse decision to cut off federal unemployment benefits for workers devastated by pandemic

Marc Dann

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Marc Dann and Brian Flick of DannLaw, one of the nation’s leading consumer protection law firms and Attorney Andrew Engel of Advocate Attorneys, LLP, today filed suit in Cuyahoga County Common Pleas Court to force Governor Mike DeWine and Matt Damschroeder, Director of the Ohio Department of Jobs and Family Services to rescind their decision to terminate Ohio’s participation in the Federal Pandemic Unemployment Compensation (FPUC), Pandemic Unemployment Assistance (PUA),  Pandemic Emergency Unemployment Compensation (PEUC) programs. The first hearing in the case has been set for July 21, 2021 at 1:30 P.M. before Judge Michael P. Shaughnessy in Courtroom 16 C in the Cuyahoga County Justice Center, 1200 Ontario St, Cleveland, OH.

DeWine and Damschroder announced on May 13, 2021 that the federally-funded benefits would be cutoff on June 26, 2021. Ohio is one of 27 states governed by Republicans that decided to terminate the benefits early.

“Along with jeopardizing the personal and financial well-being of Ohioans who are struggling to recover from the pandemic, DeWine and Damschroder’s callous and politically-motivated decision to terminate the federal benefits represents a willful and blatant violation of Ohio law,” Brian Flick said.

According to the lawsuit, Ohio Revised Code Section ORC 4141.43(I) requires Damschroder to

“…cooperate with the United States department of labor to the fullest extent…[and] take such action…as may be necessary to secure to this state and its citizens all advantages available under the provisions of the “Social Security Act” that relate to unemployment compensation…”

The mandamus action asks the Cuyahoga County Common Pleas Court to:

  • Declare Governor Dewine and Director Damschroder to be in violation of their statutory duties under R.C. 4141.43(I) by terminating Ohio’s participation in PUA, PEUC, and FUPC benefits as of the week of June 26, 2021;
  • Enjoin Dewine, Damschroder, their officers, employees, and agents, from withdrawing the State of Ohio from unemployment benefits offered through the CARES Act;
  • Order Dewine and Damschroder to immediately notify the United States Department of Labor of Ohio will participate in the programs for their duration;
  • Issue a peremptory writ of mandamus requiring the Defendants’ perform their statutory duties required by ORC 4141.43(I) and immediately take all action necessary to reinstate Ohio’s participation in all federal unemployment insurance benefit available from the United States Department of Labor.

DannLaw and Advocate Attorneys are also seeking a Temporary Restraining Order and Preliminary Injunction enjoining Dewine and Damschroder from denying Ohioans

the right to receive FPUC benefits.

The mandamus action may be viewed here: Bowling Candy 2021 07 06 First Amended Complaint TO FILE

The motion for a temporary restraining order may be viewed here: Bowling Candy 2021 07 05 Motion for TRO Final

Similar suits have been filed in three other states: Indiana, Maryland, and Texas. On June 25 Indiana Superior Court Judge John Hanley ruled that the state must continue paying the benefits and said “Indiana law recognizes the importance of these benefits. Indiana law requires the State to accept these benefits.” Court action is pending in Maryland and Texas.

“Indiana’s statutory language is very similar to Ohio’s,” Atty. Dann noted. “We believe we are right on the law an absolutely right as it relates to public policy that protects the interests of the people of the state of Ohio.”

For more information, please contact Atty. Marc Dann at 216-373-0539 or by emailing [email protected]

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DannLaw founder Marc DannDannLaw and Advocate Attorneys founder and former Ohio Attorney General Marc Dann and Andrew Engel of Advocate Attorneys LLP are hailing a recent Sixth Circuit Court of Appeals ruling that will enable them to continue fighting against Ohio’s unconstitutional  Board of Revision (BOR) tax foreclosure process in Federal District Court. The suit alleges that Montgomery County has used BOR foreclosures to steal millions of dollars in equity from property owners. A Federal District Judge in Cleveland has already found that Cuyahoga County is liable to a property owner for equity stolen in a similar manner.

The ruling in Harrison v. Montgomery County reverses a Federal District Court judge’s dismissal of a lawsuit filed by Dayton, Ohio resident Alana Harrison after the county seized her late mother’s home in 2017 via a BOR foreclosure due to a $20,000 property tax delinquency. (   ) The home’s fair market values of $22,600 was roughly $3,000 more than the taxes owed. Ms. Harrison never received the surplus equity because the BOR statute provides no way to pay it. You may read more about the case and view an interview with Ms. Harrison and Atty. Engel conducted by the Dayton Daily News here.  The Sixth Circuit ruling and all documents related to the case may be viewed and downloaded here.

In the suit Attorneys Dann and Engel contend that BOR foreclosures violate the Fifth Amendment’s Takings Clause, provisions of the Fourteenth Amendment, and sections of the U.S. Code because they do not give property owners the opportunity to seek and receive the equity that remains after a residential or commercial parcel is sold and the taxes, interest, and penalties due are paid.

“It’s well established that government has the power to take properties via public domain,” Atty. Dann said. “But government has never been permitted to do so without compensating the owner for its value until states began authorizing the use of administrative foreclosure procedures like the one we are challenging on behalf of Ms. Harrison, property owners across Ohio, and American Homeowner Preservation LLC (AHP), a company that specializes in offering ‘micromortgages’ to low-income families who want to enter the housing market.”

OH Foreclosure Timeline“This has happened to thousands of Ohioans,” Atty. Dann said. “The BOR process is a systematic taking that, according to a study by the by the Ohio Center for Journalism, robbed Ohio property owners and banks of more than $77 million in equity in 2019 alone. And because BOR foreclosures wipe out the tax debt that is owed, millions of dollars that should to school districts, local communities, and other taxing entities also vanish into thin air. Somewhere along the line what seemed like an efficient way to eliminate blight and improve neighborhoods has gone badly off the rails.”

According to Atty. Engel that view of the BOR process is gaining traction in the courts and the legal community. A number of legal journals and blogs, including JDSupra, inversecondemnation.com, and Reason reported on the Sixth Circuit decision and noted that the Supreme Court’s 2019 decision in  Knick v. Township of Scott  and the Michigan Supreme Court’s finding in Rafaelli LLC v. Oakland County make it likely that the U.S. Supreme Court will take up the issue sometime in the next five years.

In the meantime, the legal team at DannLaw and Advocate Attorneys will continue to aggressively represent clients like Ms. Harrison, AHP, and other victims of BOR foreclosures and other unconstitutional takings elsewhere. “We are eager to speak to anyone who has been impacted by this process,” Atty. Dann said. “Thousands of people have and will continue to lose millions of dollars until these illegal takings end. We won’t stop fighting until we achieve that goal.”

To arrange a no-cost consultation to discuss a BOR foreclosure contact DannLaw TODAY by calling 877-475-8100 or using the contact form on our website: dannlaw.brmcstaging.com/contact

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On Tuesday, April 27, the Consumer Financial Protection Bureau announced that Mr. Cooper/Nationstar has been withdrawing multiple mortgage payments from the bank accounts of hundreds of thousands of consumers without authorization.
If your mortgage is serviced by these companies and your payments are automatically withdrawn from your bank account, you MUST do two things NOW:
Contact your bank to determine if your account has been debited for multiple payments.
If you are a victim of the Mr. Cooper/Nationstar ripoff, contact Marc Dann and DannLaw immediately at [email protected] or 877-475-8100 or dannlaw.brmcstaging.com/contact so we can begin protecting you, your family, and your finances.
These unauthorized withdrawals can cause serious problems for victims of the Mr. Cooper/Nationstar ripoff:
  • Checks written on affected accounts may be returned NSF.
  • Automatic withdrawals from the account for auto loans, utilities, and other consumer debts may be denied.
  • Banks may charge large, multiple overdraft fees.
  • Credit scores will be negatively impacted by late or denied payments.
We have launched a full scale investigation of Mr.Cooper/Nationstar’s actions and intend to fight to secure justice and just compensation for victims. Contact us TODAY!
Check our Facebook page and dannlaw.brmcstaging.com for updates and more information.

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Travel Click logoImportant notice for anyone who received a letter from a lodging chain regarding the TravelClick date breach:  Don’t delay. Protect yourself and your family. Contact DannLaw TODAY!

Hotel chains that use TravelClick, a third-party reservation system, recently notified customers that the company allowed hackers to steal their credit card information.

As a result of the failure to protect this sensitive personal information, many people are now at high risk for identity theft and credit card fraud.

If you received a letter from a lodging chain you should contact DannLaw today. We are now investigating this data breach and believe you and other victims may be entitled to substantial financial compensation.

To arrange a no-cost no-obligation consultation about this important matter call 216-373-0539, complete the contact form found at dannlaw.brmcstaging.com/contact, or send us a direct message via our Facebook page. We are here to protect you.

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Flagstar Bank Data Breach

Important notice for current and former customers of Flagstar Bank: You may be a victim of a serious data breach! Don’t delay. Protect yourself and your family. Contact DannLaw TODAY!

Flagstar Bank recently announced that it allowed hackers to steal the social security numbers, first and last names, phone numbers, and home addresses of current and former customers. The victims include people whose mortgages were sold to Flagstar without their consent or knowledge. There are also reports that customers who closed their accounts more than ten years ago are impacted by the breach.

As a result of Flagstar’s failure to protect this sensitive personal information, you are now at high risk for identity theft, tax fraud, and tax refund diversion. In addition, cybercriminals can use this data to file fraudulent unemployment claims and open new accounts in your name.

If you received a letter from Flagstar about the breach you should immediately take advantage of the free identity monitoring service the bank is offering.

You should also contact DannLaw today. We are now investigating this devastating data breach and believe you and other victims may be entitled to substantial financial compensation.

To arrange a no-cost no-obligation consultation about this important matter call 216-373-0539, complete the contact form found at dannlaw.brmcstaging.com/contact, or send us a direct message via our Facebook page. We are here to protect you.

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A lot has changed since we posted our last update. A new president is in the White House, mortgage forbearance programs and foreclosure moratoriums have been extended by the federal government, a $1.9 trillion stimulus package is working its way through Congress, millions of Americans have been vaccinated against the coronavirus and the entire U.S. population may be inoculated by early summer.

For the first time in a very long time, there is light at the end of the COVID tunnel.

Unfortunately, that light could become an oncoming train for homeowners who make unwise or incorrect decisions when forbearance and foreclosure relief programs sunset in the months ahead. To help ensure that the end of the pandemic doesn’t mark the beginning of a nightmare for people pummeled by the virus, I’ll discuss the aid programs that are now available, how to take advantage of them, and then outline steps families should take now to secure their financial future.

FORECLOSURE MORATORIUMS

Let’s start by taking a look at the foreclosure landscape.

I’m pleased to report that there is some good news for borrowers whose mortgages are backed or owned by the federal government. The moratorium on foreclosures imposed by the Federal Housing Administration (FHA), Veterans Administration, the U.S. Department of Agriculture (USDA), Fannie Mae, and Freddie Mac will remain in effect until June 30, 2021.

While the extensions provide much-needed breathing space for homeowners who were in or were about to be in foreclosure when the pandemic struck, I must emphasize that the bans are temporary reprieves, not pardons. Mortgage servicers will begin processing judicial and non-judicial foreclosures the minute the moratoriums are lifted.

The news isn’t anywhere near as good for homeowners with loans that are not government-backed. While some states have enacted eviction and/or foreclosure moratoriums that protect borrowers whose mortgages are held by private lenders, many, including Ohio, have not. That means foreclosure is a very real and imminent threat—especially as courts in more and more jurisdictions resume normal operations.

Whether you are now protected by a federal or state moratorium or are involved in an active foreclosure proceeding, now is the time to contact experienced legal counsel like the attorneys at DannLaw for advice.

We have helped thousands of families save their homes by negotiating affordable loan modifications and utilizing groundbreaking legal strategies that stop or soften the impact of foreclosure.

We also perform a thorough review of every client’s mortgage history and case file to determine if their servicer or lender made mistakes or committed violations of federal or state consumer protection laws. Those errors and violations often enable us to defeat the foreclosure claim and recover substantial monetary damages from lenders that can put families on the path to financial security.

To learn more about our innovative and highly effective foreclosure defense strategies schedule a free consultation by completing our contact form or sending us a direct message on Facebook. But don’t delay, every day you wait could bring you one day closer to losing your home.

Forbearance

Before I dig into the details about the current state of forbearance relief, please keep this oft-repeated phrase in mind:

Forbearance is NOT forgiveness.

As I have noted in every one of our COVID updates, borrowers will be required to make the principal, interest, and escrow payments that have been deferred when their forbearance period ends. No one, not President Biden, members of Congress, nor the CEOs of major lenders and servicers has ever so much as hinted that these costs will be forgiven. That means homeowners will, at some point, be on the hook for thousands of dollars in arrearages.

That said, here is an overview of the relief programs that are available and applicable deadlines.

Borrowers with FHA, VA, or USDA loans have the right to request up to 12 months of forbearance in two six-month increments. The deadline to apply for an initial 180-day forbearance period has been moved from March 31, 2021 to June 30, 2021.

In addition, the agencies are also providing two extensions of up to three months each for homeowners who paused payments on or before June 30, 2020. The extensions will give homeowners nearing the end of their maximum 12-month forbearance period extra time to recover from financial hardships caused by the pandemic. Borrowers who qualify must apply for the additional time no later than June 30, 2021.

Homeowners with Fannie Mae/Freddie Mac loans are eligible for up to 12 months of forbearance. At this point, the agencies have not set a deadline to apply for an initial 180-day forbearance period.

Like the FHA, VA, and USDA, Fannie and Freddie are also giving borrowers approaching the end of their maximum forbearance period more time to resume making payments.  Homeowners who entered forbearance on or before February 28, 2021 may now request an additional three months of relief.

With due apologies to Shakespeare, we’ve arrived at the point in the update where I must say: To forbear or not to forbear, that is the question. Although every situation is different, here are some broad guidelines that will help borrowers with government-backed loans determine if they should enter, remain in, or avoid forbearance:

  • While forbearance is not a perfect solution, it is far better than foreclosure. That is why struggling homeowners should take advantage of the available relief programs. If you are in forbearance and are unable to resume making your mortgage payments stay in until you are back on your feet. If you are not in forbearance but need to be, contact your lender, and apply ASAP.
  • If you are in forbearance but can now afford to make your mortgage payments, it’s time to plan and execute an exit strategy. Staying in longer than necessary will needlessly increase the amount of deferred principal, interest, and escrow you owe moving forward.
  • Borrowers who have been and can continue to make their mortgage payments should avoid forbearance like the plague.

Deciding how to settle the balances accrued during forbearance is just as important as choosing whether to enter the program and when or if to leave. While the specific plans offered by each agency differ, in general, the following four options are available. It is important to note that FHA, VA, USDA, Fannie and Freddie are prohibited from requiring borrowers to make lump sum payments of the amounts due.

Repayment plan. This option enables borrowers to pay the balance due by increasing their mortgage payment for a few months.

Deferral or partial claim. This option allows homeowners who can resume making their regular payments but can’t afford more to move missed payments to the end of their loan or put them in a subordinate lien repayable only when they refinance or sell their home or terminate their mortgage.

Loan modification. Borrowers who can no longer afford their pre-pandemic mortgage payment can negotiate a loan modification. The amount owed in deferred principal, interest, and escrow will be rolled into the loan. The monthly payment will probably drop, but the term or the principal balance of the mortgage may increase.

Lump-sum reinstatement. An option to consider for borrowers who have the financial wherewithal to pay back missed payments all at once.

Your mortgage servicer should reach out to you 30 days before your forbearance period ends to discuss your options. Here are two important points to ponder:

First, remember, you cannot be forced to make a lump sum payment. If that is the only option offered by the servicer, ask them about the other plans they offer.

Second, each repayment option is complicated and carries risk. Don’t think for a minute that your servicer is looking out for your best interests. In many cases the opposite is true. That is why you should consult with DannLaw before leaving forbearance. We will work with you to devise an exit strategy that protects you and your family and helps secure your financial future.

Things are even more complicated and risky for homeowners whose mortgages are held by private lenders. If you are in forbearance, please stay in regular contact with your servicer because they have the ability to change the terms of your plan at any time. They can also require you to make a lump sum payment if you choose to leave or they decide to end your forbearance period. In addition, it is highly likely that any repayment options they offer will be designed to maximize their profit at your expense.

DannLaw’s experienced legal team knows how to deal with and hold private lenders accountable. If you have a private mortgage, don’t hesitate to contact us to arrange a free consultation so we can assess your situation and help ensure that your home and your finances don’t become victims of the pandemic.

Finally, I want to remind everyone that forbearance is not automatic. You must always contact your lender or servicer and ask to defer your payments and you must make the request no later than the deadlines I’ve listed in this update.

If you have any questions about forbearance, foreclosure, or other consumer credit or lending issues, do not hesitate to contact us. We are here to help.

Thank you for taking the time to read this update. Be well, and take heart, we’ve come a long way together and I’m confident better days are just ahead.